This report provides Transforma Insights’ views on the In-Vehicle Infotainment market, accessed through the Vehicle Head Unit or through aftermarket devices.
In-vehicle Wi-Fi and media streaming have become increasingly popular amongst consumers over the past decade. In-vehicle Wi-Fi allows passengers to stream media, download applications, and access the internet. To make use of this media whilst in a moving vehicle, users will require a reliable, high-bandwidth connection. This demand is likely to continue to grow in the future as bandwidth becomes cheaper.
However, the ubiquitous smartphone limits the size of this market, particularly in vehicles with Apple CarPlay or Android Auto installed. Some drivers will simply choose to use their smartphones to browse the internet or stream media instead. Vehicles compatible with smartphone mirroring can take advantage of the vehicle’s controls to access their media. Nonetheless, drivers are increasingly being discouraged from the distractions of smartphone usage whilst driving. Those who wish to lower their risk of an accident or falling foul of local traffic laws will be keen to make use of In-Vehicle Infotainment on the Vehicle Head Unit.
The report provides a detailed definition of the sector, analysis of market development and profiles of the key vendors in the space. It also provides a summary of the current status of adoption and Transforma Insights’ ten-year forecasts for the market. The forecasts include analysis of the number of IoT connections by geography, the technologies used and revenue. A full set of forecast data, including country-level forecasts, sector break-downs and public/private network splits, is available through the IoT Forecast tool.
The report examines key factors that are influencing the development of the market, including:
This section of the report first defines in-vehicle infotainment systems and explains how many consumers now choose to stream media, instead of owning it (which requires a reliable and high-bandwidth connection). It also explains how this trend will continue in future, owing to factors such as bandwidth becoming cheaper. It then provides a survey by AutoPacific analysing vehicle owners’ interest across 11 different connected vehicle features.
This section first discusses how infotainment systems have become a key differentiator for automotive OEMs, while highlighting how increasingly complex interfaces can frustrate users despite the growing range of features. It then examines how automakers are integrating AI-powered voice assistants and gesture recognition to improve usability, enable hands-free interactions, and deliver more personalised in-vehicle experiences. These developments also increase the importance of reliable, low-latency connectivity.
It goes on to explain how customer dissatisfaction with touchscreen-heavy interfaces has prompted some OEMs to reconsider physical controls. Examples include Volkswagen’s plans to reintroduce buttons for frequently used functions and Hyundai Motor Group’s development of Pleos Connect, which combines physical controls with a touchscreen. The section concludes by exploring how this shift towards simpler interfaces could influence future infotainment design and software development.
This section first explains how the availability of in-vehicle media streaming depends on reliable cellular connectivity, with the widespread deployment of 4G and 5G networks supporting its adoption. It also highlights regional differences in uptake, noting that in-vehicle streaming is more common in East Asia, North America, and Europe than in developing regions, where network coverage and cost sensitivity can be barriers. It then discusses how OEMs are increasingly adopting multiple SIMs and connectivity plans to manage billing across different vehicle functions and services. This allows passengers, automakers, fleet operators, and insurers to use and pay for connectivity according to their respective needs, covering infotainment, telematics, and third-party applications. Finally, it explains how multiple connectivity profiles can help OEMs deliver in-vehicle services reliably while optimising network bandwidth to meet the varying requirements of applications such as gaming, videoconferencing, and over-the-air (OTA) updates.
This subsection explores the commercial use of in-vehicle infotainment systems, which are not used for media streaming (in most cases) but are rather focused on maintaining employee productivity in the field. For instance, these systems ensure workers’ access to critical web applications and email.
This subsection primarily focuses on how the easy availability of smartphones has limited the scope of the in-vehicle infotainment consumer market since this allows customers to use their smartphones’ data plan. It also claims that since smartphones pose distractions for drivers while they are driving, smartphone mirroring is being increasingly adopted.
This subsection charts the major disadvantages of modern infotainment applications, such as creating cognitive, manual, and visual distraction for drivers. It also exclaims that such dangers may lead to the formation of some legislation, although their implementation will remain largely voluntary. For instance, the National Highway Traffic Safety Administration (NHTSA) in the US has proposed guidelines to avoid text messaging, playing games and web browsing in the front seat of a moving car.
This section first defines the In-Vehicle Infotainment Head Unit Application and explains how the growing adoption of smartphone mirroring systems, such as Apple CarPlay and Android Auto, has drawn users away from proprietary OEM infotainment systems. It highlights their widespread adoption, with over 250 million cars compatible with Android Auto as of January 2026.
It then discusses why some OEMs, such as Rivian and General Motors, have sought to promote their proprietary infotainment systems to tap into subscription revenues, collect user data, and offer in-system applications. It also explains how customer demand has prompted GM to reintroduce smartphone mirroring and highlights survey findings on its importance to vehicle buyers. It also examines smartphone mirroring as a key constraint on OEM infotainment revenues, citing the advantages of frequently updated smartphone software and existing mobile data plans over vehicle-based systems that may become outdated and require additional subscriptions.
In a tabular format, it then charts the In-Vehicle Head Unit Infotainment subscription plans for various automotive OEMs, including Audi, BMW, BYD, Chery, Chrysler, Fiat, Ford, Geely, General Motors, Hyundai, Mitsubishi, Nissan, Porsche, Renault, Subaru, Tesla, and Toyota. Case in point, Tesla’s Premium Connectivity (which includes in-vehicle navigation, AI companion, satellite view maps, mobile app dashcam viewer, Wi-Fi, music, and video) costs USD9.99 per month or USD99 per year.
It then discusses how OEMs are collaborating with mobile network operators such as AT&T and Verizon to offer in-vehicle Wi-Fi, highlighting their connected-car plans, pricing, connectivity options, and vehicle compatibility. It goes on to explain how the growing adoption of EVs and lengthy charging stops are driving the diversification of infotainment options beyond conventional in-vehicle media. For example, Valeo has collaborated with Unity to develop an extended-reality racing game that incorporates real-time surroundings. Finally, it explores how autonomous vehicles could further accelerate infotainment development by allowing occupants to engage with in-vehicle content more freely, making infotainment an increasingly important purchasing consideration and product differentiator for OEMs. This section also lists a few examples of relevant IoT deployments in this application, including General Motors introducing Gemini into its vehicles.
This section first explains what it includes: aftermarket infotainment head units that are retrofitted by vehicle owners and offered by third-party vendors, such as Pioneer, Kenwood, and Sony, and in-vehicle Wi-Fi devices, such as JioMotive. It then explains the benefits of pairing aftermarket devices with smartphones that have Bluetooth connectivity (like allowing users to access phones’ media through aftermarket devices). It also adds that the popularity of aftermarket devices has not faded entirely, since in some cases, they offer better sound quality or other upgraded features, when compared to factory-fitted devices.
It further adds that some vendors (like Uno Minda) are now offering advanced aftermarket music systems with features such as AI-based voice control that includes integration with Amazon Alexa and AI-voice recognition. It also notes that declining sales of aftermarket infotainment head units have strained vendor revenues, prompting some to diversify or cease operations, as Clarion did in North America in 2016.
It then discusses another common device type, aftermarket Wi-Fi hotspots, explaining their functionality and the connectivity technologies they typically rely on, such as cellular networks. For example, JioMotive is an OBD-II device that provides Jio 4G, Wi-Fi, and Bluetooth connectivity. Its features include real-time vehicle location tracking, vehicle health monitoring, driving behaviour analysis, anti-tow alerts, geofencing, time fencing, anti-theft alerts, and accident detection. The section also lists a few examples of products in this application, including Pioneer DMH-W3000NEX and Sony XAV-9500ES.
The key vendors section lists some of the main providers of products and services related to the In-Vehicle Infotainment market, such as Denso Corporation, Alpine Electronics, Harman International, Kenwood Corporation, Mitsubishi Electric Corporation (MELCO), and Continental AG. The report provides profiles of the various vendors including aspects most relevant to this Application Group, such as product offerings, pricing, financial results, and technology.
In the market forecasts section, we provide a summary of the forecasts from the Transforma Insights IoT Forecast Database:
The report charts the growth in the number of devices, which will grow from 5.3 million in 2025 to 6.6 million in 2035. Transforma Insights forecasts are compiled on a country-by-country basis. This report includes a regional summary, showing splits between Australasia, Greater China, North America, Europe, Japan, Latin America, MENA, Russia & Central Asia, South East Asia, South Korea, India & South Asia, and Sub-Saharan Africa.
Transforma Insights’ IoT forecasts include splits between the various connectivity technologies as follows: 2G, 3G, 4G, 5G mMTC, 5G non-mMTC, LPWA (non-mMTC), Satellite, Short Range, and Other.
This section discusses which technologies will be used in the in-vehicle infotainment application group.
This part of the report discusses the market growth in terms of revenue (module revenue, service wrap revenue, and VAC revenue). Transforma Insights estimates that the revenue in the In-Vehicle Infotainment Application Group will grow at a CAGR of 7%.
